If you don’t sign up for Medicare Part D when you’re first eligible and go 63 or more days without creditable drug coverage, you may face a late enrollment penalty. This penalty is added to your monthly Part D premium once you enroll and can last for as long as you have Part D.

The penalty is based on how many full months you went without drug coverage. It’s calculated by multiplying 1 percent of the national base beneficiary premium by the number of uncovered months. In 2026, the base premium is $36.68, but that amount may change each year.

Even if you don’t take prescriptions now, it’s a good idea to enroll in a low-cost Part D plan when you turn 65 to avoid penalties later. If you’re over 65 and losing employer coverage, make sure you enroll promptly to stay penalty-free.

Planning ahead can save you money in the long run.